SSTI Digest

Searching for good reasons to support localized college scholarship programs for urban residents? A recent working paper from the Federal Reserve Bank of New York provides convincing evidence: a one point increase in the percentage of residents with a college degree is associated with a 2.3 percent increase in a metro area's gross domestic product (GDP) per person. While not the subject of the paper, community and regional policymakers may expect if they couple this fact with the other benefits associated with having a more educated populace - such as lower crime rates, lower vacancy rates, higher property values, and more entrepreneurship - that subsidized higher education programs should "pay" for themselves through higher tax revenues and lower costs to the public. In Human Capital and Economic Activity in Urban America, Jaison Abel from the Federal Reserve Bank of New York and Todd Gabe from the University of Maine explore the relationship between various measures of human capital and the economic activity within a metro region. Their work contributes to the discussion of why public policy intervention for ameliorating a region's education and…

Every year, the U.S. Census Bureau compiles data at the national and state levels describing the performance of the manufacturing sector within the U.S. While the data are usually included in the Census’ Annual Survey of Manufacturers, every five years the data can instead be found in the U.S. Economic Census. SSTI has prepared a table showing the state rankings for the percent change over the five-year period from 2002 to 2006 for the total value-added manufacturing, the value of shipments, and the value-added per employee for each state and the District of Columbia. For the U.S. as a whole, the country’s value-added increased 22.1 percent, from $1.89 trillion in 2002 to $2.3 trillion in 2006. Louisiana, Wyoming, Montana, Delaware and Hawaii, respectively, led the nation in the percent increase in value-added manufacturing over this period.   Texas led the nation in 2006 with $528 billion in shipments from manufacturers. This was followed by California with $467 billion, Ohio with $284 billion and Illinois with $243 billion in shipments. Top-ranked Hawaii experienced a 111 percent increase in the value of shipments, rising from $3.5…

Being associated with the premiere professional development event of the year for the nation's technology-based economic development community can yield tremendous returns for your company, organization or program. Exposure and unrivaled networking opportunities are presented through SSTI's annual conference -- broadening the reach and deepening the impact of your marketing dollars. Last year’s sold-out conference included more than 350 representatives from 48 states and four countries. Sponsorship opportunities exist to let professional attendees know that your organization is actively involved in innovation and tech-based economic development. Starting for as little as $2,000, you can highlight your organization -- and a conference registration is included! Your organization can take advantage of the powerful reputation of SSTI’s annual conference and connect with the leading thinkers and decision makers in the field. Only one exhibiting opportunity remains, and a limited number of additional recognized sponsorship categories is available, including recognition on the conference proceedings CD-ROM, morning yoga and fitness runs, Falcon…

In perusing SSTI Weekly Digest articles related to approved and enacted budgets over the last several months, it is evident a majority of governors and legislators are supporting TBED initiatives through increased or maintained funds despite a bleak fiscal outlook in the coming years. However, state spending is expected to decrease over the next fiscal year and beyond. Combined with declines in state revenue and a weakening national economy, few state-supported programs and initiatives can be presumed safe from the possibility of budget cuts. Last month, the Spring 2008 Fiscal Survey of States revealed projections of further declines in state revenue for a significant number of states, indicating that more than a quarter of states were forced to reduce their enacted budgets for fiscal year 2008, and 18 states assume negative budget growth for FY09. By comparison, only three states had to reduce their enacted budgets in FY07, the report states. Last month alone, governors in Connecticut, Florida, Hawaii, New Hampshire and New York ordered across-the-board cuts to state agencies’ current operating budgets.   Absorbing across-the-board cuts early…

Several bills from the 2008 legislative session were signed into law by Gov. Ed Rendell during the past two weeks, including the fiscal year 2008-09 budget, providing enhancements to K-12 programs encouraging science, technology, engineering and mathematics (STEM) and a measure to significantly expand the Keystone Opportunity Zone (KOZ) tax incentive program.   Last week, Gov. Rendell signed SB 1412 into law enabling the Pennsylvania Department of Community and Economic Development (DCED) to designate up to 15 new zones, allow for expansion of existing zones, and extend the expiration dates of existing unoccupied parcels. The KOZ program was created in 1999 and provides state and local tax incentives to businesses that develop old industrial sites and underused areas. DCED also will receive $50.7 million in general funds from the FY 2008-09 budget for the Ben Franklin Technology Development Authority Fund -- $1 million less than last fiscal year and $15.1 million for the Manufacturing Extension Partnerships Industrial Resource Centers, down from $15.2 million in FY08.   Lawmakers supported several of Gov. Rendell’s STEM proposal’s…

North Carolina legislators approved last week the fiscal year 2008-09 budget adjustment, providing additional funds for several TBED initiatives within the higher education system. Earlier this year, Gov. Mike Easley unveiled recommendations to use surplus funds to expand university projects aimed at supporting TBED (see the May 14, 2008 issue of the Digest).   Additional operating funds within the University of North Carolina (UNC) System appropriated in the budget agreement include: $3 million for the new Joint Graduate School of Nanoscience and Nanoengineering at North Carolina A&T and UNC-Greensboro Millennium Campus; $2 million for the bioengineering program at the North Carolina State University College of Engineering; and, $1.5 million to fund new tuition waivers aimed at recruiting and retaining top tier graduate students in mathematics and science. The approved budget also provides additional funds to continue university programs initiated over the last two fiscal years, including $3 million for the Faculty Recruiting and Retention Fund and $1 million for the Research Competitiveness Fund. The latter invests in research projects…

Last week, Ohio Gov. Ted Strickland signed an executive order that immediately allows all U.S. veterans eligible for the Montgomery GI Bill, their spouses, and their dependents to enroll at in-state tuition rates at Ohio’s public colleges and universities. Titled the Ohio GI Promise, the policy effectively allows all U.S. veterans to attend college for free in Ohio, once the new federal GI bill goes into effect on Aug. 1, 2009. Ohio law gives the Chancellor of the state’s system of higher education the ability to determine which students can be deemed residents of Ohio. As outlined in Gov. Strickland’s executive order, all veterans along with their spouses and children who decide to live in Ohio to attend the state’s public colleges and universities will effectively be considered Ohio residents eligible for the reduced tuition rates. Other components of the executive order include: Establish a council to market and monitor the educational opportunities for veterans at Ohio colleges and universities; Hold a university system-wide conference in the fall of 2008 to advance policies to assist veterans and share best practices; Expand the Ohio…

Though the state of Florida has aggressively pursued research investment over the past few years, particularly in the life science, a new report finds the state is still struggling to build a sufficient pool of highly-skilled workers for its high-tech companies. The study, which was conducted at the behest of 19 local economic development organizations, finds the state has not yet made a complete transition from an agriculture- and real estate-based economy to one built on high-tech industry and innovation. Interviews with statewide stakeholders also confirmed there is a continuing need in the state to support innovations-based entrepreneurs through economic development organizations. The study was conducted at the request of the Florida High Tech Corridor Council, the Metro Orlando Economic Development Commission, Space Florida and several other local economic development organizations and companies. After a series of interviews, research into the state's programs and a benchmark analysis, they found that the most glaring obstacle facing the state was its weaknesses in human capital and talent development. The state’s K-12 educational system was perceived as…

Collaborative research, particularly federally funded R&D, is playing an increasingly significant role in producing the top innovations each year, according to a new analysis released by the Information Technology and Innovation Foundation (ITIF). Where Do Innovations Come From? Transformations in U.S. National Innovation System, 1970-2006 shows a dramatically diminishing role for the largest firms acting independently to fuel future technological advances.   Fred Block and Matthew Keller examined a random sample of 1,200 of the nation’s top commercialized innovations over the past four decades – as identified by R&D Magazine for its annual R&D 100 Awards – to determine the type of entity or entities that were responsible.   The total number of the top 100 innovations each year that include Fortune 500 firms either working independently or collaboratively with others has fallen from the mid-40s during the 1970s to only six in 2006.   Conversely, projects involving federal labs working either alone or collaboratively has risen from four in 1971 to 42 in 2006. Interorganizational collaborations of…

A delegation of Automation Alley representatives recently traveled to the White House to receive the 2008 "E" Award for exporting. The Presidential 'E' Award was created by President John F. Kennedy in 1961 to recognize persons, firms or organizations which contribute significantly to increase U.S. exports.   Since 2001, Automation Alley, a Michigan technology business association and SSTI affiliate member, has conducted eight trade missions and plans a mission to Brazil later this year. The missions focus on small and mid-sized companies in the automotive, electronic equipment, machinery, alternative energy, environmental, biotechnology, information technology and medical fields. Automation Alley directly attributes the trade missions to generating more than $130 million in new business and economic development for company participants in the region, in addition to creating nearly 100 new jobs in Southeast Michigan.   Of the 16 “E” awards made in 2008, Automation Alley is one of only three service organizations recognized and the only one exclusively serving the extensive tech community of its service area. The other…

Steve Bazinet has been hired as executive director of the Maine Center for Enterprise Development. Rahindra Bose is Ohio University's new vice president for research and creative activity and dean of the graduate college. David Fouts was selected as the next president and chief executive of MAGNET, the Manufacturing Advocacy & Growth Network. Fouts replaces Fatima Weathers, who served for a year as acting president. Denichiro Otsuga was named the first director of technology transfer at South Dakota State University. Harris Pastides was selected to replace Andrew Sorensen as University of South Carolina system president. Sorenson retired after six years at the helm. Linden Rhoads was appointed as vice provost of the University of Washington's TechTransfer unit. Rhoads starts her new position Aug. 14. Hunter Roberts, South Dakota's interim state energy director, was appointed to the post of energy policy director. Brent Tolman is the new executive director of the Workforce Development Alliance in Idaho. Sterling Wharton was hired as program director for Georgia's Centers of Innovation program.

This afternoon, Pennsylvania Gov. Edward Rendell signed a $650 million package of tax incentives, loans and grants to spur the development and use of clean energy technologies within the state. The governor believes that the bill will help the state leverage as much as $3.5 billion in private investment and help the state build a stronger clean energy industry. Highlights from the Alternative Energy Investment Act include: $165 million for loans and grants that support alternative and renewable energy projects conducted by businesses and local governments; $100 million for loans, grants and rebates covering up to 35 percent of individual and small business costs incurred by installing solar energy systems; $40 million for an alternative energy development program under the Ben Franklin Technology Development Authority, which will support early-stage research, incubator support services and other business assistance; $20 million for wind and geothermal energy projects; $80 million for grants and loans related to solar energy production projects; and, $50 million for an alternative energy production tax credit equal to 15 percent of the cost of eligible energy production…